A tax haven is a country or territory that subjects individuals and businesses to little to no taxes. The person or business doesn’t generally have to physically reside in the country.

In addition, most tax havens provide anonymity and do not disclose the identities of owners of companies and accounts registered in the country to foreign authorities. However, pressure from foreign governments has forced some tax havens to provide information to foreign governments about their citizens who have assets in the tax haven.

Some notable tax havens include the British Virgin Islands, Cayman Islands, Monaco, Isle of Man, Lichtenstein, and the Bahamas.